Walmart starts selling Sun's Java PCs

Santa Clara (CA) - With a little help from Microtel, Sun Microsystems today announced its first steps in the consumer market : Walmart has begun selling PCs with the Java Desktop Environment. Sun’s ambitious goal : Conquer 20 percent market share of the office PC segment.

Tired of Windows ? Plain Linux too complicated ? Well, then look to Walmart for a new flavor. The largest US retailer is known for offering alternatives for people who do not want to spend big bucks on a new PC system. After selling PCs with a preinstalled version of the Linux-based Lindows OS, Walmart is now the first retailer which is offering Linux-based computers with Sun’s Java Desktop Environment.

Microtel, a company which has been building PCs for Walmart for some time, has agreed to manufacture x86-based computers with the Sun operating system and sell it through the Walmart channel. The systems use Suse Linux as operating system and are currently offered only on the website of the retailer and range from $298 to $698.

The entry level machine houses a 1.6 GHz AMD Duron processor, a 40 GByte harddrive, 128 MByte RAM, an Ethernet card as well as a CD-Drive. Floppy and monitor go extra. Trade up to a $400 system and you’ll get the floppy and a Celeron 2.6 GHz processor. The top-of the line system offers a 3 GHz P4 HT processor, 256 MByte RAM, a 80 GByte harddrive, and a CD-RW/DVD-ROM combo drive. All systems come with StarOffice.

Sun’s initial target was not really the consumer market, but rather the office desktop segment. The software was announced last December with a focus on the enterprise market, where Sun offers the software for a fee of $50 per employee. The strategy of an alternative and streamlined office PC however is not new : For example Oracle tried to push its thin-client network computer "NC" in 1996 into a market dominated by Microsoft - with little success.

"The Java Desktop System has achieved phenomenal success among customers who appreciate the value of simplicity, security and affordability with open source desktop components," said Jonathan Schwartz, president and chief operating officer, Sun Microsystems. "By collaborating with a premier PC manufacturer and distributor we are able to deliver on the demand for alternative desktops to new and diverse markets."

Walmart without doubt has the potential to help the Java PC to greater visibility and grab market share. Sun itself believes that it can reach about 20 percent of this market. Analysts however believe this is rather unrealistic, but the connection to Walmart might prove to be successful : "It is a brave move," said Martin Reynolds, an analyst at Gartner. "But for for this money it is certainly worth a try."

The fact that the brand Sun is little known in the consumer space, Walmart might be able to profit from the partnership. Rather than paying for a System with an unknown name, Sun might be able to deliver a certain level of trust to convince people to buy the entry level machines. Reynolds however does not think that this PC will have a significant impact on the market : "Walmart could sell a million PCs and you wouldn’t really see the effect."